What Is An Aztech Document/Aztech Form/ Aztech Recognition Agreement?
Importance of The Aztech Document
- If the buyer fails to pay their routine maintenance, the lender can step in and pay (to secure their investment), so the co-op board gets financial stability.
- If the buyer defaults on their “mortgage” payment and the bank captures and resells the co-op apartment to cover their losses, they will pay any outstanding co-op dues first. The rest is used to cover the bank’s losses and whatever remains is the buyer’s share.
- The lender usually has to get permission or board approval before repossessing the apartment or selling or transferring it to someone else.
- The co-op board recognizes the lender’s right to repossess and foreclose the apartment if the buyer defaults on their payment.
- The board ensures that the buyer’s shares in the co-op and proprietary lease will not be used to secure additional debt.
- The lender is notified whenever the buyer has missed a maintenance payment so that the lender can pay instead and be forewarned about the buyer’s financial problems, which may cause them to miss the mortgage payment as well.
Most Aztech documents have standard legal language and provisions that are mutually beneficial for the lender and the co-op board.